Banking profitability in United Arab Emirates from 2008 to 2012 Post Graduate Student Name: Musab Ahmad Alatiyat BUiD
MSc Finance & Banking Financial Statement Analysis and Security Valuation FN503 Student ID : 2013109084 Email :
[email protected],
[email protected] Mobile 00971503315404 November 25th,2013
BUiD-F&B- 2013109084
Electronic copy available at: http://ssrn.com/abstract=2386013
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Abstract
This research investigates Banks’ profitability in the United Arab Emirates from 2008 to 2012 using Bankscope Data Base, Financial Statement, and quantitative methodology techniques. This study focusse on 4 banks, 2 Islamic banks (Dubai Islamic Bank PJSC, Abu Dhabi Islamic Bank - Public Joint Stock Co.), and 2 conventional banks (Union National Bank, Mashreqbank PSC). Each one sae assets fo about 20 billion USD in 2012. The Literature review summarized important related studies in tnoosfsid durations. They studied 27 criteria effecte on profitability in GCC, Asia, Tunis, and Greek. This research study on the Amount of Assets Change, Equity Change, Return on assets Average (ROAA) & Return on equity (ROEA), Profit before Tax, Operational profit, operational profit/average Equity, Interest income. This study found different results from other studies such as inflation and GDP do not have an effect on change of assets, ROAA, and ROEA. Islamic banks faced many problems in 2009, and 2010, but they had a good correcting after one year, and their ratio’s different from others, they have less ROA, ROE, but their interest, after 2010 become the highest.
Keywords: Banks’ profitability, ROA, ROE, Total Assets, Total Equity, Interest, income, population, Inflation, real GDP, Statement Analysis Techniques, United Arab Emirates.
BUiD-F&B- 2013109084
Electronic copy available at: http://ssrn.com/abstract=2386013
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Table of content 1
Abstract ........................................................................................................................................... 2
2
Introduction .................................................................................................................................... 6
3
4
5
2.1
Rationale of Assignment .......................................................................................................... 6
2.2
Null Hypothesis ........................................................................................................................ 6
2.3
Challenges ............................................................................................................................... 6
Literature review ............................................................................................................................. 7 3.1
Terminology............................................................................................................................. 7
3.2
Research Articles...................................................................................................................... 7
3.3
Summary, Comments, and Criticisms ........................................................................................ 9
Methodology ................................................................................................................................. 10 4.1
Sample Data and Period ......................................................................................................... 10
4.2
Analytical Approach ............................................................................................................... 10
Analysis ......................................................................................................................................... 11 5.1
Amount of Assets Change, Equity Change ............................................................................... 11
5.2
Return on assets Average (ROAA) & Return on equity ............................................................. 11
5.3
Profit Before Tax .................................................................................................................... 11
5.4
Operational profit .................................................................................................................. 11
5.5 Interest income ...................................................................................................................... 12 5.5.1 Interest Income & Interest Expense ................................................................................... 12 5.5.2 Interest income on loans/Average Gross Loans .................................................................. 12 5.5.3 Interest Income/Average Earning Assets ............................................................................ 12 5.5.4 Net Interest Income/Average Earning Assets ...................................................................... 12 5.6 Interest Expense..................................................................................................................... 12 5.6.1 Interest Expense on Customer Deposits/Average Customer Deposit................................... 12 5.6.2 Interest Expense/Average Interest – Bearing Liabilities Ratio.............................................. 13 5.6.3 Net Int. Less Loan Impairment charges/ Average Earning Assets. ........................................ 13 6
Summary of Findings, and Suggestions, and Recommendations .................................................... 13
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Electronic copy available at: http://ssrn.com/abstract=2386013
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Conclusion ..................................................................................................................................... 13
8
Bibliography .................................................................................................................................. 14
9
Appendices .................................................................................................................................... 15 9.1 Tables .................................................................................................................................... 15 9.1.1 Table 1 Governments shareholders table ......................................................................... 15 9.1.2 Table 2 Equity/Total Assests ........................................................................................... 16 9.1.3 Table 3 Amount Of Change Rate for Total assets in bill USD ............................................. 17 9.1.4 Table 4 Amount Of Change Rate for Equity in bill USD ..................................................... 17 9.1.5 Table 5 United Arab Emirates - inflation .......................................................................... 17 9.1.6 Table 6 – Regression Change on Assets with Inflation ...................................................... 18 9.1.7 Table 7 Return on Average Assets (ROAA) ................................................................. 19 9.1.8 Table 8 Return on Average Assets (ROAE) ................................................................... 19 9.1.9 Table 9 Profit before Tax .................................................................................................... 20 9.1.10 Table 10 UAE Independent indicators: GDP – Inflation - population................................ 20 9.1.11 Interest Income on Loans/ Average Gross Loans ............................................................ 20 9.1.12 Interest Expense on Customer Deposits/ Average Customer Deposits ............................ 21 9.1.13 Interest Income/ Average Earning Assets ....................................................................... 21 9.1.14 Interest Expense/ Average Interest-bearing Liabilities .................................................... 22 9.1.15 Net Interest Income/ Average Earning Assets................................................................. 22 9.1.16 Net Int. Inc Less Loan Impairment Charges/ Av. Earning Assets ...................................... 23 9.1.17 Net Interest Inc Less Preferred Stock Dividend/ Average Earning Assets ......................... 23 9.1.18 ROAA relation with inflation and GDP rate ..................................................................... 24 9.1.19 SPSS .............................................................................................................................. 24 9.1.20 Bankscope Definitions ................................................................................................... 28 9.1.21 Assets Rank for United Arab Emirates banks .................................................................. 29 9.2 Graphs ................................................................................................................................... 31 9.2.1 Chart 1 Change on assetss................................................................................................. 31 9.2.2 Chart 2 Change on Equity ................................................................................................. 31 9.2.3 Chart 3 Total Assetss in USD bill ....................................................................................... 32 9.2.4 Chart 4 Equity in USD bill ................................................................................................. 32 9.2.5 Chart 5 Return on assets Average (ROAA) from 2008 to 2012 ............................................ 33 9.2.6 Chart 6 Return on Equity Average (ROEA) from 2008 to 2012 ........................................... 33 9.2.7 Chart 7 profit before Tax ............................................................................... 34 9.2.8 Chart 8 GDP - Inflation ..................................................................................................... 34 Chart 9 Profit before Tax mil USD ................................................................................................... 35 Chart 10: Operating profit/ average Assets & Operating profit/ average Equity .............................. 36 9.2.9 Chart 11- Interest Income on Loans/ Average Gross Loans ................................................. 37 9.2.10 chart12 - Interest Income/ Average Earning Assets ........................................................ 37 9.2.11 Chart 13- Net Interest Income/ Average Earning Assets ................................................. 38 9.2.12 Chart14- Interest Expense on Customer Deposits/ Average Customer Deposits .............. 38 9.2.13 Chart15- Interest Expense/ Average Interest-bearing Liabilities ...................................... 39 9.2.14 Chart16- Net Int. Inc Less Loan Impairment Charges/ Av. Earning Assets ........................ 39 9.2.15 Chart17- Net Interest Inc Less Preferred Stock Dividend/ Average Earning Assets ........... 40 9.2.16 Cart 18 Population-mil ........................................................................................ 40
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2
Introduction
In the UAE there are 37 banks (Bankscope Data Base), some of them are Islamic banks and others are conventional. Many of them have strong relations with the government. 6 banks in UAE data are n.a in bankscope, the other 31 banks total assets are about 512 billion USD. There are many ranks, this study uses bank assets size rank, and group banks into 4 categories; 1st category Emirates NBD PJSC, and National Bank of Abu Dhabi, their assets about 80 billion USD each, 2nd category Abu Dhabi Commercial Bank, and First Gulf Bank, their assets about 40 billion USD each, 3rd category Dubai Islamic Bank PJSC, Union National Bank, Abu Dhabi Islamic Bank - Public Joint Stock Co., and Mashreq bank PSC, their assets about 20 billion USD each, 4th category all retail small bank which their assets less than 20 billion. This study focuses on the 3rd category, analyzing their profitability from 2008 to 2012.
2.1 Rationale of Assignment The lecturer review summarized that the Inflation effect on banks profitability (positive/negative relation) in some countries and others not, demotic growth rate (GDP ) adjust the inflation, population, and prices, and its correlated with any business profitability as capitals investment (Lui, J & Ohlson J & Zahang W, 2013) so it’s necessary to test its relation with profitability. Population should effect on profitability because 85% UAE people are Expats, most of them skill workers, so any change in population should be related to number of job, also loans and deposits, so it effect on profitability. The most important question about profitability is ROA,ROE, how much their return, so this study focus try to test return on assets, return on equity, Interest, and income ratios.
2.2 Null Hypothesis There isn’t a significant relation between (ROA, ROE), and (GDP, Inflation, population) for all of these category banks.
2.3 Challenges Many researchers studied banks profitability round the world, and fewer in UAE, and GCC. The only way to study this zone is applying other areas studies on this area using real data. Bankscope, it is the most important database for banks, but some information fields are null for this region, even if they are available in other regions. The challenge is BUiD-F&B- 2013109084
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how to use the available data to get the right results. Also many factors affect profitability and some of those factors correlated to others and related to profitability also. This Study attempts to pull out the profitability ratios for the 3rd banks category in UAE from 2008 - 2012 ,and highlighting the differentiation between ratios, to open a window for researchers to study deeply profitability factors ,and increase it profitability for banks sector in UAE.
3 Literature review 3.1 Terminology Many researchers studied Banks’ profitability using dependent and independent factors. They used financial ratios, operational ratios, and liquidity ratios. They used assets, liability, tax, banks size, inflation, region, globalization, GDP, policies and laws to find their relationship with profitability.
3.2 Research Articles Harson (SudinHaron 2004) studied Islamic banks’ profit using panel data and dummy variables. He also used statistics and found the following results: a positive relationship between 1st interest rate and total income, 2nd consumer price index and profitability, total expense 3rd interest rate, inflation and size with profit for Islamic and conventional banks. Harson found a negative relationship between Islamic governments and Islamic banks developing due to protection policies. Harson also found Islamic and conventional banks’ profitability ratios were too close therefore conventional banks can use Islamic banks products. Other study (Al Haris,AbuGhazalah, El-Galgy 2013) used Basel 3 to compare Islamic banks’ profitability with conventional in GCC during 2003-2011 and found Islamic banks’ efficiency needed improvement to match conventional banks, but profitability and liquidity were opposite. GCC banks suffered a modest crisis in 2008. Many researchers studied it. One of the most important researches (Muni Sekhar Amba1 &FayzaAlmukharreq, 2013) used the bank scope database for 92 banks in GCC. 27 out of 92 banks were Islamic. They found that even the profitability of the Islamic banks was reduced but it was still better than BUiD-F&B- 2013109084
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conventional banks during the crisis. It was better than conventional banks because they have better ROA, ROE and NIM. The following table summarizes how GCC banks were affected by the global 2008 crisis. The following table summarizes their results no 1 2 3 4 5 6
Profitability element Equity ratio Tangible equity Equity ratio Loan ratio Assets ratio Liability
7 8 9
Deposit ratio Capital structure Liquidity
Crises effect on GCC banks Depreciate in all banks Islamic banks less than Conventional Islamic banks less than Conventional Positive effect with the crisis for all Negative effect with the crisis for all Increased in both with the crisis but Islamic banks had better deposit/expense ratio Greater in Islamic banks than Conventional banks Conventional better than Islamic banks Same effect on Islamic banks and Conventional
Other study analyzed the relationship between capital with profitability and the risk in 24 Asian countries from 2004 to 2008 using Moments technique method for dynamic panels (Chien-Chiang Lee a,*, Meng-Fen Hsieh b 2013). This study found a low positive relation between Investment banks and profitability, a highly negative relation between commercial banks and profitability, and it also found the country income increasing, reduces capital effect on profitability, and found that profitability is sensitive by capital in the Middle East more than anywhere. (Ghzouri, Mihiri 2013) studied profitability and macroeconomic factors for 10 commercial Tunisian banks from 1988 to 2011 using GMM model to find a positive relation between profitability and 1st capital, 2nd efficiency and 3rd foreign shareholders. A negative relation between profitability and bank size, a negative relation between GDP and net interest margin and dependent factors did not have an effect on ROA. Tunisia didn’t have a crisis in 2008 (HoussemRachdi 2013) because their banks hadn’t a strong relation with USA banks due to the strong control of the Central Bank. Rachdi compared Tunisia’s banks within two periods; 1st period before the crisis 2000-2006, 2nd period during and after crisis (2007-2010). He considered that the crisis started in 2007. In the 1st period he found a positive relationship between performance and 1st capital, 2nd bank size and GDP. And negative relationship between 1st cost of income rate, 2nd grow of deposit rate, 3rd inflation. But in the 2nd period he found a positive relationship with 1st inflation, 2nd GDP, and a negative relationship between printability and operational efficiency. Rachdi’s study gives a good comparison between the two periods BUiD-F&B- 2013109084
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but this study compares between 4 periods and interprets banks’ profitability depending on more criteria’s. CSP, GMM Macroeconomic technique used to study the profitability in Greek banks from 1985-2001(Panayiotis P. Athanasoglou 2008) and found a positive relation
between profitability and 1st labor productivity, 2nd business cycle and 3rd inflation because Greek banks reduced deposit interest rates and increased loan interest rates. But a high negative relation between profitability and operation expense as a result of high managerial decision cost. They showed in more than one place in their research that the high cost of managers’ designs reduces the profitability. Finally there is no evidence for a relation between banks size and profitability. They found that small banks make good profit and have good growth.
3.3 Summary, Comments, and Criticisms Researchers used different techniques to study banks’ profitability round the world. They summarized helpful similar and varies results to improve banks efficiency. Harson (2004) used panel data and studied Islamic banks profitability, and compare them with conventional banks. Alharis (2013) used basel3 technique to study GCC banks. Ambal M (2013) used bankscope to study GCC banks and compared Islamic banks with conventional banks. Chiien Lee (2013) used moment technique for dynamic data panel to study Asian banks. Ameur (2013) used GMM to study 10 Tunisian commercial banks. Rachdi (2013) analyzed many researches about Tunisian commercial banks with is 2 periods before and after 2008 crisis. This study use bank scope and Excel spreadsheet to analyze banks profitability in United Arab Emirates. They analyzed the flowing profitability elements and factors; 1st interest rate 2nd total income, 2nd consumer price index, 3rd expense, 4th inflation 5th size, 6th ROA, 7th ROE, 8th NIM, 9th Equity ratio, 10th Tangible equity, 11th Equity ratio, 12th Loan ratio, 13th Assets ratio, 14th Liability, 15th Deposit ratio, 16th Capital structure, 17th Liquidity, 18th efficiency , 19th foreign shareholders, 20th GDP, 21 cost of income rate, 22 grow of deposit rate, 23 inflation, 24 relation with foreign banks, 25 bank type (Investment, commercial, and Islamic), 26 labor productivity, 26 business cycle, 27 operation expense. Although many researchers studied banks’ profitability using macroeconomics and microeconomics factors highlighting the factor making loss and gain around the world,
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and fewer in UAE, but still need more comprehensive researches to compile and interpret results and support decision makers to increase the profitability.
4
Methodology
4.1 Sample Data and Period This study focuses on four banks in UAE (Dubai Islamic Bank PJSC, Abu Dhabi Islamic Bank - Public Joint Stock Co, Union National Bank, Mashreqbank PSC) during a 4 year period from 2008 – 2012. Data that was obtained from Bankscope DB on 23/10/2013 was converted to excel sheets. The data updated on 22/10/2013, update no 1606@BvD . Bankscope Database contains most world banks data. This study filtered them as United Arab Emirates country, and Assess size. It then selected the related fields and entered the important Data into Excel sheets which allowed it to analyze the data. Tables and graphs attached to the appendix.
4.2 Analytical Approach This study uses the quantitative methods techniques, spreadsheets, spss, and bankscope database to find out profitability factors by compiling the relations between; 1st amount of change on assets and on equity. 2nd Assets with inflation, 3rd Growth of Gross Loans relation with GDP, 4th population with Customer Deposits/ Total Funding excl Derivatives, and ROAA, ROEA also. Calculations and relations implemented by charts, to give non-doubtable results, and help bank design makers to increase their banks profitability. Government has shares in all selected banks, so the relation with government weren’t studied in this research.
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5
Analysis
5.1 Amount of Assets Change, Equity Change Table 6, and charts 1,2,8 shows that there is no significant relation between inflation and change on assets or change on equity. Chart 3 shows all selected banks gain assets every year except Mashriq Bank , in 2009 its assets was 25,765 billion and in 2012 it was 20,799 billion, that means it lost (25,76520,799=4,966 billion), about 5 billion in 3 years. Chart 4 show all selected banks gain equity, therefore, this study shows that there isn’t any problem with equity.
5.2 Return on assets Average (ROAA) & Return on equity Table 7 & chart 5 shows the 2 Islamic banks ROAA’s dropped sharply until 2009 & 2010 and corrected after 1 year but their ROAA is still less than the other 2 banks. Table 8 & chart 6 shows the 2 Islamic banks ROEA’s dropped sharply until 2009 & 2010 and corrected after 1 year also, but Mashreq banks dropped slowly and correct slowly, and Union banks dropped in 2009 and then become stable. By 2012 all of this category ROEA was close.
5.3 Profit Before Tax Table 9 & 10 , Charts 7,9 shows the 2 Islamic banks profit dropped sharply until 2009 & 2010. They then corrected themselves after 1 year as there ROA (graph 6). Chart 8 shows GDP is similar in shape to Abu Dhabi Islamic banks only in graph 7. ADIS also gains less profit than other banks from 2008 to 2010, but from 2010 to 2012 it enhanced its profitability and gained on the others. Union banks profit was lower than DIB and Mashreq in 2008. In 2012 it showed the most profitability. This profitability progress from 2009 – 2012 is clear and can be seen in the graphs named above. Spss tables (10.2.17) shows there is a no significant relation between independent factors (GDP, Inflation) and ROA , ROE, also profit before tax.
5.4 Operational profit The operational profit/average Equity in chart 10 behaves like profit before tax in chart 7 for all banks except Union Bank. Even if it gains more equity, one bank (chart2),but its ROEA is the highest, that means its operational profit is greater than others, except Abu Dhabi Islamic bank .
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5.5 Interest income 5.5.1
Interest Income & Interest Expense
Chart 12 show the negative relation between interest income, average earning assets, when Interest Income/average earning Assets ratio appreciate that mean either interest income increased or earning assets decreased. Chart 3 show assets ranks, gain, and loss. So comparing chart12 with chart2 shows the following: 1st Abu Islamic Bank Interest Income increased over all trends because it gains assets and its interest income/average assets is steady. Dubai Islamic bank its Interest income increased in 2011, Mashriq bank interest income decreased as its assets , that’s interpret his ROA (chart5), and profit before tax(chart7) depreciating Comparing interest income and net interest income in Chart 12, and chart 13 show Mashreq bank lose income more than others. Both Islamic banks gain more interest income than others in 2010. And chart 15 show Islamic banks have less interest expense/ average bearing liability than others. 5.5.2 Interest income on loans/Average Gross Loans All banks Interest income on loans/Average Gross Loans ratios (chart11) depreciated, but Abu Dhabi Islamic Bank better ratio was better than others , Mashriq bank’s ratio depreciated more than the other banks involved in this study. 5.5.3 Interest Income/Average Earning Assets Abu Dhabi Islamic Bank interest income was the highest, because its Interest Income/Average Earning Assets was steady (chart 12) even if it is gaining assets more than any one (chart1), Mashriq bank had the lowest interest income because its assets were depreciating in chart 1, and Interest Income/Average Earning assets depreciated also until it become the lowest. 5.5.4 Net Interest Income/Average Earning Assets Islamic banks had the highest and Mashriq banks were the lowest (chart 13), Abu Dhabi Islamic banks ratio greater than others more than 1%.
5.6 Interest Expense 5.6.1 Interest Expense on Customer Deposits/Average Customer Deposit A weak negative relation, between Interest, Expense on Customer Deposits/Average Customer Deposit and population (chart 14, chat 18). It is clear for Mashreq and Union, but Islamic banks decreased less.
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5.6.2 Interest Expense/Average Interest – Bearing Liabilities Ratio Islamic banks show lower ratios and are more linear (chart 15), Mashreq and Union had near ratios by the end of 2012. 5.6.3 Net Int. Less Loan Impairment charges/ Average Earning Assets. Chart 16 show all banks ratios affected in 2009, but after that Abu Dhabi Islamic Bank was the highest and Mashriq was the lowest.
6
Summary of Findings, and Suggestions, and Recommendations
Islamic banks (AIB& DIB) ratios (ROAA, ROEA, profit before tax, interest income, net interest income) dropped in 2009 and 2010 but fixed after one year. It became more than the others especially AIB although they had less Interest expense/bearing liability. Mashriq bank faced many problems; its problems first appeared in 2010 and continued until 2012. This is clear in losing its assets and in all its profitability related ratios. Union banks operational profit was more than the others except AIB, and his ROE was the highest. Inflation, population and GDP do not affect profitability clearly for all banks. There isn’t any significant relation in spss, regression or shown in the charts. Abu Dhabi Islamic Bank, and Mashreq Bank need deeper study, not only profitability, but their efficiency also, because in 2010 their profitability progress had a big changes, one up and the other down. The deeper study indeed show focus on reasons.
7
Conclusion
The literature review covered various regions in the world. Each study summarized various results. This study finds some different results. Al Haris (Al Haris Abu Ghazalah, El-Galgy, 2013) studied 92 banks in GCC and summarized that Islamic Banks had better ROA and ROE, but this study summarized that the 2 Islamic banks had less ROA and ROE but more Interest and less expense. This study recommend other banks to reduce their expense because it worked for the Islamic banks, they fixed their problems in one year. The literature review studies show profitability relation with independent factors (inflation, GDP, population) positive in a country and negative in other. But this study didn’t find a clear significant relation. BUiD-F&B- 2013109084
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Bibliography
Al-Hares, O., AbuGhazaleh, N. & El-Galfy, A. (2013). Financial performance and compliance with Basil III capital standards: Conventional vs. Islamic banks. The journal of applied business research, vol. 29(4), pp. 1031-1048. Ambal, M. & Almukharreq(2013), F. Impact of the financial crisis on profitability of the Islamic banks vs. conventional banks: evidence from GCC. International journal of financial research, vol. 4(3), pp. 83-93. Ameur, I. & Mhiri, S. (2013). Explanatory factors of bank performance evidence from Tunisia. International journal of economics, finance and management, vol. 2(1), pp. 143-152. Athanasoglou, P., Brissimis, S., & Delis, M. (2008). Bank-specific, industry-specific and macroeconomic determinants of bank profitability. Journal of international markets intuitions and money, vol. 18(2), pp. 121-136. Haron, S. (2004). Determinants of Islamic bank profitability. Global journal of finance and economics, vol. 1(1), pp. 2-22. Lee, C. & Hsieh, M. (2013). The impact of bank capital on profitability and risk in Asian banking. Journal of international money and finance, vol. 32(1), pp. 251-281. Liu, J., Ohlson, J. & Zhang, W. (2013). A comparison of Chinese and US firms' profitability [online]. Accessed November 20th, 2013. Available at http://ssrn.com/abstract=2204872. Rachdi, H. (2013). What determines the profitability of banks during and before the international financial crisis? Evidence from Tunisia. International journal of economics, finance and management, vol. 2(5), pp. 370-377.
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9
Appendices
9.1 Tables
Table 1 Governments shareholders table
9.1.1
Bank Name
Shareholder - Name
Shareholder - Type
Shareholder Total %
1
Emirates NBD PJSC
GOVERNMENT OF DUBAI
Public authority, State, Government
55.64
2
National Bank of Abu Dhabi
GOVERNMENT OF ABU DHABI via its funds
Public authority, State, Government
69.88
3
Abu Dhabi Commercial Bank
GOVERNMENT OF ABU DHABI via its funds
Public authority, State, Government
58.13
3
Abu Dhabi Commercial Bank
GOVERNMENT OF NORWAY via its funds
Public authority, State, Government
0.1
4
First Gulf Bank
GOVERNMENT OF NORWAY via its funds
Public authority, State, Government
0.22
4
First Gulf Bank
GOVERNMENT OF ABU DHABI via its funds
Public authority, State, Government
0.16
5
Dubai Islamic Bank PJSC
GOVERNMENT OF DUBAI
Public authority, State, Government
n.a.
5
Dubai Islamic Bank PJSC
GOVERNMENT OF NORWAY via its funds
Public authority, State, Government
0.17
6
Union National Bank
GOVERNMENT OF DUBAI via its funds
Public authority, State, Government
10
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9.1.2
Table 2
Equity/Total Assests
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9.1.3
Table 3 Amount Of Change Rate for Total assets in bill USD
year
2008 2009 2010 2011 2012
9.1.4
year
2008 2009 2010 2011 2012
Dubai Islamic Bank PJSC
Union National Bank
Abu Dhabi Islamic Bank Public Joint Stock Co.
-0.005 0.066 0.008 0.053
0.161 0.080 0.008 0.057
0.251 0.174 -0.012 0.152
Mashreqbank PSC
0.015 -0.103 -0.066 -0.036
Table 4 Amount Of Change Rate for Equity in bill USD
Dubai Islamic Bank PJSC
Union National Bank
Abu Dhabi Islamic Bank Public Joint Stock Co.
0.026448 0.143967 -0.00965 0.037906
0.385973 0.118417 0.095106 0.080663
0.267101 0.135219 0.057065 0.476007
Mashreqbank PSC
0.108972 0.045257 0.033808 0.079461
9.1.5 Table 5 United Arab Emirates - inflation Percentage change in consumer price index in local currency (period average), over previous year. Bankscope obtained data from UAE National Statistics Bureau Year 2008 2009 2010 2011 2012 Inflation rate % 12.25% 1.56% 0.88% 0.87% 0.67%
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9.1.6
Table 6 – Regression Change on Assets with Inflation
Regression Statistics Multiple R 0.57183 R Square 0.32699 Adjusted R Square -0.00952 Standard Error 0.111463 Observati ons 4 ANOVA df Regression
1
Residual
2
Total
3
SS 0.0120 73 0.0248 48 0.0369 21
Coefficie nts
Standar d Error
t Stat
P-value
-0.02083
0.1738 3
0.1198 1
0.9155 81
16.31244
16.548 08
0.9857 61
0.4281 7
Intercept X Variable 1
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MS 0.0120 73 0.0124 24
F 0.9717 24
Significan ce F 0.42817
Lower 95%
Upper 95%
-0.76876
0.7271 01
-54.8882
87.513 07
Lower 95.0% 0.768 76 54.88 82
Upper 95.0% 0.7271 01 87.513 07
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9.1.7
Table 7
Return on Average Assets (ROAA) Return on Average Assets (ROAA)
Return on Average Assets (ROAA)
Return on Average Assets (ROAA)
Return on Average Assets (ROAA)
Return on Average Assets (ROAA)
%
%
%
%
%
2008
2009
2010
2011
2012
Dubai Islamic Bank PJSC
1.84
1.43
0.64
1.17
1.28
Bank Name
Union National Bank
2.39
1.64
1.71
1.83
1.89
Abu Dhabi Islamic Bank - Public Joint Stock Co.
1.79
0.14
1.47
1.54
1.5
Mashreqbank PSC
1.92
1.13
0.93
1.05
1.76
9.1.8
Table 8
Return on Average Assets (ROAE) Return on Average Equity (ROAE)
Return on Average Equity (ROAE)
Return on Average Equity (ROAE)
Return on Average Equity (ROAE)
Return on Average Equity (ROAE)
%
%
%
%
%
2008
2009
2010
2011
2012
Dubai Islamic Bank PJSC
16.01
13.68
5.81
10.33
11.5
Union National Bank
20.02
12.61
11.95
12
11.79
Abu Dhabi Islamic Bank - Public Joint Stock Co.
15.39
1.22
13.42
13.85
11.32
Mashreqbank PSC
16.37
9.45
6.91
6.84
10.3
Bank Name
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9.1.9
Table 9 Profit before Tax Profit before Tax
Profit before Tax
Profit before Tax
Profit before Tax
Profit before Tax
mil USD
mil USD
mil USD
mil USD
mil USD
2008
2009
2010
2011
2012
Dubai Islamic Bank PJSC
423
332
153
290
328
Union National Bank
395
322
370
413
444
Abu Dhabi Islamic Bank - Public Joint Stock Co.
232
21
279
315
327
Mashreqbank PSC
476
293
233
240
382
Bank Name
9.1.10 Table 10 UAE Independent indicators: GDP – Inflation - population 2008 1 2 3 4 5
Population-mil GDP at constant $ rate (Jan 03) - bil GDP real growth rate % GDP per head at constant $ rate (Jan 03) Inflation rate %
6.8 315.5 3.19% 46723.2 12.25%
2009 6.5 254.8 -4.80% 39104.3 1.56%
2010 6.7 287.4 1.67% 42663.2 0.88%
2011 7.1 348.6 3.88% 49187.9 0.87%
9.1.11Interest Income on Loans/ Average Gross Loans Interest Income on Loans/ Average Gross Loans 2008
Interest Income on Loans/ Average Gross Loans 2009
Interest Income on Loans/ Average Gross Loans
Interest Income on Loans/ Average Gross Loans
Interest Income on Loans/ Average Gross Loans
2008
2009
2010
2011
2012
Dubai Islamic Bank PJSC
6.11
6.32
5.97
5.95
5.7
Union National Bank
6.18
6.83
6.46
6.12
6.09
Abu Dhabi Islamic Bank - Public Joint Stock Co.
7.31
7.14
7.42
7.09
6.79
6.5
7.49
7.3
6.27
5.88
Bank Name
Mashreqbank PSC
BUiD-F&B- 2013109084
Page 20
2012 7.5 383.8 4.37% 51330.6 0.67%
9.1.12 Interest Expense on Customer Deposits/ Average Customer Deposits Interest Expense on Customer Deposits/ Average Customer Deposits
Interest Expense on Customer Deposits/ Average Customer Deposits
Interest Expense on Customer Deposits/ Average Customer Deposits
Interest Expense on Customer Deposits/ Average Customer Deposits
Interest Expense on Customer Deposits/ Average Customer Deposits
2008
2009
2010
2011
2012
2.63
2.52
2.25
2
1.96
Union National Bank
3.05
3.71
2.95
2.16
1.97
Abu Dhabi Islamic Bank - Public Joint Stock Co.
2.57
2.28
2.01
1.64
1.38
Mashreqbank PSC
3.17
4.06
3.68
1.62
1.2
Interest Income/ Average Earning Assets
Interest Income/ Average Earning Assets
Interest Income/ Average Earning Assets
Interest Income/ Average Earning Assets
Interest Income/ Average Earning Assets
2008
2009
2010
2011
2012
Dubai Islamic Bank PJSC
5.49
5.54
5.07
5.41
5.25
Union National Bank
5.96
6.08
5.53
5.21
5.14
Abu Dhabi Islamic Bank - Public Joint Stock Co.
6.09
5.97
5.93
5.92
5.88
Mashreqbank PSC
6.12
6.46
6.04
5.02
5.19
Bank Name
Dubai Islamic Bank PJSC
9.1.13 Interest Income/ Average Earning Assets
Bank Name
BUiD-F&B- 2013109084
Page 21
9.1.14 Interest Expense/ Average Interest-bearing Liabilities Interest Expense/ Average Interest-bearing Liabilities
Interest Expense/ Average Interest-bearing Liabilities
Interest Expense/ Average Interest-bearing Liabilities
Interest Expense/ Average Interest-bearing Liabilities
Interest Expense/ Average Interest-bearing Liabilities
2008
2009
2010
2011
2012
Dubai Islamic Bank PJSC
2.44
2.34
1.99
1.7
1.66
Union National Bank
3.15
3.53
2.9
2.18
2.12
Abu Dhabi Islamic Bank Public Joint Stock Co.
2.12
2.01
1.77
1.4
1.2
Mashreqbank PSC
3.61
3.88
2.87
2.25
2.02
9.1.15 Net Interest Income/ Average Earning Assets Net Interest Income/ Average Earning Assets
Net Interest Income/ Average Earning Assets
Net Interest Income/ Average Earning Assets
Net Interest Income/ Average Earning Assets
Net Interest Income/ Average Earning Assets
2008
2009
2010
2011
2012
Dubai Islamic Bank PJSC
3.15
3.2
3.08
3.58
3.52
Union National Bank
2.84
2.65
2.85
3.23
3.28
Abu Dhabi Islamic Bank - Public Joint Stock Co.
4.12
4.08
4.25
4.53
4.63
Mashreqbank PSC
2.66
2.65
3.21
2.91
3.3
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9.1.16 Net Int. Inc Less Loan Impairment Charges/ Av. Earning Assets Net Int. Inc Less Loan Impairment Charges/ Av. Earning Assets
Net Int. Inc Less Loan Impairment Charges/ Av. Earning Assets
Net Int. Inc Less Loan Impairment Charges/ Av. Earning Assets
Net Int. Inc Less Loan Impairment Charges/ Av. Earning Assets
Net Int. Inc Less Loan Impairment Charges/ Av. Earning Assets
2008
2009
2010
2011
2012
Dubai Islamic Bank PJSC
2.85
2.22
2.16
2.26
2.23
Union National Bank
2.57
2.2
2.17
2.42
2.41
Abu Dhabi Islamic Bank - Public Joint Stock Co.
3.04
1.29
3.04
3.38
3.7
2.2
0.07
0.76
1.17
2.08
Mashreqbank PSC
9.1.17 Net Interest Inc Less Preferred Stock Dividend/ Average Earning Assets Net Interest Inc Less Preferred Stock Dividend/ Average Earning Assets
Net Interest Inc Less Preferred Stock Dividend/ Average Earning Assets
Net Interest Inc Less Preferred Stock Dividend/ Average Earning Assets
Net Interest Inc Less Preferred Stock Dividend/ Average Earning Assets
Net Interest Inc Less Preferred Stock Dividend/ Average Earning Assets
2008
2009
2010
2011
2012
Dubai Islamic Bank PJSC
3.15
3.2
3.08
3.58
3.52
Union National Bank
2.84
2.65
2.68
3.07
3.13
Abu Dhabi Islamic Bank - Public Joint Stock Co.
4.12
4.08
4.25
4.53
4.63
Mashreqbank PSC
2.66
2.65
3.21
2.91
3.3
Net Interest Inc Less Preferred Stock Dividend/ Average Earning Assets
BUiD-F&B- 2013109084
Page 23
9.1.18 ROAA relation with inflation and GDP rate Abu Dhabi Dubai Islamic Union Islamic Bank National year Bank PJSC Public Joint Bank ROAA ROAA Stock Co. rate% rate% ROAA rate% 1.84% 2.39% 1.79% 2008 2009 2010 2011 2012
Mashreqbank PSC ROAA rate%
inflation Rate%
GDP Rate%
1.92%
12.25%
3.19%
1.43%
1.64%
0.14%
1.13%
1.56%
-4.80%
0.64%
1.71%
1.47%
0.93%
0.88%
1.67%
1.17%
1.83%
1.54%
1.05%
0.87%
3.88%
1.28%
1.89%
1.50%
1.76%
0.67%
4.37%
9.1.19 SPSS SPSS- Correlations Return on Assets Average Relation with Inflation
DIB_ROA
Pearson Correlation
DIB_ROA
UNB_ROA
AIB_ROA
Masriq
Inflation
Relation
1
.709
-.031
.752
.748
positive
.180
.961
.142
.146
Sig. (2-tailed)
UNB_ROA
AIB_ROA
Masriq
Inflation
N
5
5
5
5
5
Pearson Correlation
.709
1
.635
.817
.922*
Positive strong
Sig. (2-tailed)
.180
.250
.091
.026
Weak positive
N
5
5
5
5
5
Pearson Correlation
-.031
.635
1
.403
.370
Sig. (2-tailed)
.961
.250
.501
.540
N
5
5
5
5
5
Pearson Correlation
.752
.817
.403
1
.679
Sig. (2-tailed)
.142
.091
.501
N
5
5
.208
5
5
5
*
1
Pearson Correlation
.748
.922
.370
.679
Sig. (2-tailed)
.146
.026
.540
.208
N
5
5
5
5
5
*. Correlation is significant at the 0.05 level (2-tailed).
BUiD-F&B- 2013109084
Page 24
SPSS -
GDP & Return on Assets Average - Correlations DIB_ROA
DIB_ROA
Pearson Correlation
UNB_ROA
1
-.056
.180
.961
.142
.929
5
5
5
5
5
Pearson Correlation
.709
1
.635
.817
.507
Sig. (2-tailed)
.180
.250
.091
.384 5
5
5
5
5
-.031
.635
1
.403
.961
.250
5
5
Pearson Correlation
.752
Sig. (2-tailed)
Pearson Correlation
Sig. (2-tailed) N
N GDP
Relation
.752
N
Masriq
GDP
-.031
N
AIB_ROA
Masriq
.709
Sig. (2-tailed)
UNB_ROA
AIB_ROA
Pearson Correlation Sig. (2-tailed) N
*
.949
.501
.014
5
5
5
.817
.403
1
.405
.142
.091
.501
5
5
5
5
5
-.056
.507
*
.405
1
.929
.384
.014
.498
5
5
5
5
.949
Negative weak
Positive strong
.498
5
*. Correlation is significant at the 0.05 level (2-tailed).
year
2008 2009 2010 2011 2012
Dubai Islamic Bank PJSC ROEA rate% 16%
Union National Bank ROEA rate%
Abu Dhabi Islamic Bank - Public Joint Stock Co. ROEA rate%
Mashreqbank PSC ROEA rate%
inflation Rate%
GDP Rate%
20%
15%
0.1637
12.25%
3.19%
14%
13%
1%
0.0945
1.56%
-4.80%
6%
12%
13%
0.0691
0.88%
1.67%
10%
12%
14%
0.0684
0.87%
3.88%
12%
12%
11%
0.103
0.67%
4.37%
BUiD-F&B- 2013109084
Page 25
SPSS – GDP relation with Return on Equity - Correlations DIB_ROE DIB_ROE
Pearson Correlation
UNB_ROE
1
Sig. (2-tailed)
UNB_ROE
Pearson Correlation
.697
Sig. (2-tailed)
.191
.818
-.171
.191
.730
.091
.784
5
5
5
5
1
.355
*
.922
.145
.558
.026
.816
5
5
5
Pearson Correlation
-.214
.355
1
.192
.905
Sig. (2-tailed)
.730
.558
.757
.035
5
5
5
5
5
1
.121
.818
.922
.192
Sig. (2-tailed)
.091
.026
.757
5
5
5
Weak negative
Strong positive
.846 5
5
*
1
Pearson Correlation
-.171
.145
.905
.121
Sig. (2-tailed)
.784
.816
.035
.846
5
5
5
5
N
Relation
*
*
Pearson Correlation
N RDP_Rate
-.214
5
N Masriq_ROE
GDP Rate
5
N AIB_ROE
Masriq_ROE
.697
5
N
AIB_ROE
5
*. Correlation is significant at the 0.05 level (2-tailed).
SPSS – Return on Equity - Correlations DIB_ROE DIB_ROE
Pearson Correlation
UNB_ROE
1
Sig. (2-tailed) N UNB_ROE
.697
Sig. (2-tailed)
.191
-.214
.818
.687
.191
.730
.091
.200
5
5
5
5
.355
*
**
1
.922
1.000
.558
.026
.000
5
5
5
5
-.214
.355
1
.192
.373
.730
.558
.757
.537
5
5
5
5
5
Pearson Correlation
.818
*
.192
1
.922*
Sig. (2-tailed)
.091
.026
.757
5
5
5
5
5
Pearson Correlation
.687
**
.373
*
1
Sig. (2-tailed)
.200
.000
.537
.026
5
5
5
5
Pearson Correlation
N
N Inflation
Inflation
5
Sig. (2-tailed)
Masriq_ROE
Masriq_ROE
.697
5
Pearson Correlation
N AIB_ROE
AIB_ROE
N
.922
1.000
weak
strong
.026
.922
5
*. Correlation is significant at the 0.05 level (2-tailed). **. Correlation is significant at the 0.01 level (2-tailed).
BUiD-F&B- 2013109084
Page 26
SPSS- GDP constant $ bill - relation with profit before Tax - Correlations DIB_profit_bef
UNB_profit_befor
AIB_profit_before_
Masriq_profit_b
GDP_Co
ore_Tax_bil
e_Tax_bil
Tax_bil
efore_Tax_bil
nstant_
Relation
bil DIB_profit_before_Tax_bi
Pearson Correlation
l
Sig. (2-tailed) N
1
Pearson Correlation
.149
bil
Sig. (2-tailed)
.811
AIB_profit_before_Tax_bi
Pearson Correlation
l
Sig. (2-tailed) N
-.242
.826
.187
.811
.694
.085
.763
5
5
5
5
1
*
.309
**
.044
.613
.002 5
5
UNB_profit_before_Tax_
N
.149
.888
.984
5
5
5
-.242
*
1
.015
.819 strong
.981
.090
.888
.694
.044
5
5
5
5
5
1
.269
Pearson Correlation
.826
.309
.015
x_bil
Sig. (2-tailed)
.085
.613
.981
5
5
5
5
5
Pearson Correlation
.187
**
.819
.269
1
Sig. (2-tailed)
.763
.002
.090
.662
5
5
5
5
GDP_Constant_bil
N
strong
5
Masriq_profit_before_Ta
N
weak
.984
.662
5
*. Correlation is significant at the 0.05 level (2-tailed). **. Correlation is significant at the 0.01 level (2-tailed).
BUiD-F&B- 2013109084
Page 27
9.1.20 Bankscope Definitions Bankscope \ EIU Countery profile - United arab Emirates
Population - source
UAE Central Bank, Annual Report 1996 (figures derived from the federal Ministry of Planning)
GDP at constant $ rate (Jan 03) definition
Nominal GDP in $, calculated on the basis of the GDP in local currency at current market prices, converted at constant $ rate (Jan 1, 2003)
BUiD-F&B- 2013109084
GDP real growth rate (%) definition
Percentage change in real GDP, over previous year.
GDP real growth rate (%) source
Derived from National Bureau of Statistics
GDP real growth rate (%) note
GDP per head at constant $ rate (Jan 03) definition
Inflation rate definition
Inflation rate source
Prior to 2000 data are estimated using growth rates for GDP at 1995 constant prices.
Nominal GDP per head in $, calculated on the basis of the GDP in local currency at current market prices converted at constant $ rate (Jan 1, 2003), divided by population
Percentage change in consumer price index in local currency (period average), over previous year.
UAE National Statistics Bureau
Page 28
9.1.21 Assets Rank for United Arab Emirates banks
Bank Name
Country Rank by Assets
World Rank by Assets
Total Assets bil USD
Total Assets bil USD
Total Assets bil USD
Total Assets bil USD
Total Assets bil USD
2008
2009
2010
2011
2012
1
Emirates NBD PJSC
1
259
77
77
78
77
84
2
National Bank of Abu Dhabi
2
266
45
54
58
70
82
3
Central Bank of the United Arab Emirates
53
56
62
64
71
4
Emirates Bank International PJSC
51
n.a.
n.a.
n.a.
n.a.
5
Abu Dhabi Commercial Bank
3
429
40
44
49
50
49
6
First Gulf Bank
4
445
29
34
38
43
48
7
National Bank of Dubai Public Joint Stock Company
28
n.a.
n.a.
n.a.
n.a.
8
Dubai Islamic Bank PJSC
5
677
23
23
24
25
26
9
Union National Bank
6
731
18
21
22
22
24
10
Abu Dhabi Islamic Bank - Public Joint Stock Co.
7
737
14
17
20
20
23
11
Mashreqbank PSC
8
799
25
26
23
22
21
12
Commercial Bank of Dubai P.S.C.
9
1253
10
10
10
10
11
13
Emirates Islamic Bank PJSC
10
1292
7
7
9
6
10
14
Al Hilal Bank PJSC
11
1412
2
5
7
8
9
15
National Bank of Ras Al-Khaimah (P.S.C.) (The)-RAKBANK
12
1568
n.a.
n.a.
n.a.
n.a.
7
16
Bank of Sharjah
13
1727
4
5
6
6
6
17
Sharjah Islamic Bank
14
1948
4
4
5
5
5
18
Noor Islamic Bank
15
1968
6
5
5
5
5
19
National Bank of Fujairah
16
1992
3
3
4
4
5
BUiD-F&B- 2013109084
Category
Ranking Year 2012
1
2
3
4
5
Page 29
Bank Name
20
Dubai Bank
21
United Arab Bank PJSC
22
Amlak Finance PJSC
23
Commercial Bank International P.S.C. Arab Bank for Investment & Foreign Trade-Al Masraf National Bank of Umm Al-Qaiwain
Country Rank by Assets
17
World Rank by Assets
2145
Total Assets bil USD
Total Assets bil USD
Total Assets bil USD
Total Assets bil USD
Total Assets bil USD
2008
2009
2010
2011
2012
5
5
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
3
4
4
4
4
n.a.
n.a.
18
2317
3
3
3
3
3
19
2332
4
3
4
3
3
20
2365
4
4
4
3
3
Invest Bank P.S.C.
21
2465
n.a.
n.a.
3
3
3
27
Tamweel PJSC
22
2539
3
3
3
3
3
28
Abu Dhabi Investment Company
23
3347
2
2
3
2
2
29
Ajman Bank
24
3636
0
1
1
1
1
30
Bank Melli Iran
n.a.
n.a.
n.a.
n.a.
n.a.
31
Waha Capital P.J.S.C.
1
1
1
1
1
32
Finance House PJSC
1
1
1
1
1
1
1
1
n.a.
n.a.
0
0
0
0
0
0
0
n.a.
n.a.
n.a.
0
n.a.
n.a.
n.a.
n.a.
1
1
1
0
0
0
0
0
0
0
0
0
0
0
0
n.a.
n.a.
n.a.
n.a.
n.a.
24 25 26
33 34 35
Emirates Industrial Bank Emirates Investment Bank PJSC Abu Dhabi Investment House
36
Al khaliji France SA
37
SHUAA Capital psc
38
Dunia Finance LLC
39 40
Credit Europe Bank (Dubai) Ltd Wall Street Exchange Centre (Dubai)
BUiD-F&B- 2013109084
25
26
27
28
4444
6332
7242
11958
Category
Ranking Year 2012
6
Page 30
9.2 Graphs 9.2.1
Chart 1 Change on assetss
Assets in bil USD 30
Dubai Islamic Bank PJSC
25
Union National Bank
20 15
Abu Dhabi Islamic Bank - Public Joint Stock Co.
10 5
Mashreqbank PSC
0 2008
9.2.2
2009
2010
2011
2012
Chart 2 Change on Equity
Equity in bil USD 4.5
Dubai Islamic Bank PJSC
4 3.5
Union National Bank
3 2.5 2 1
Abu Dhabi Islamic Bank - Public Joint Stock Co.
0.5
Mashreqbank PSC
1.5
0 2008
2009
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2010
2011
2012
Page 31
9.2.3
Chart 3 Total Assetss in USD bill
Chart 3 Total Assetss in USD bill 30 25
20
2008
15
2009
10
2010
5
2011
0 Dubai Islamic Union Abu Dhabi Mashreqbank Bank PJSC National Bank Islamic Bank PSC Public Joint Stock Co.
9.2.4
2012
Chart 4 Equity in USD bill
Chart 4 Equity in USD bill 4.5 4 3.5 3 2.5 2 1.5 1 0.5 0
2008 2009 2010 2011 Dubai Islamic Bank PJSC
Union National Bank
BUiD-F&B- 2013109084
Abu Dhabi Islamic Bank Public Joint Stock Co.
Mashreqbank PSC
2012
Page 32
9.2.5
Chart 5 Return on assets Average (ROAA) from 2008 to 2012
Chart 5 Return on assets Average (ROAA) from 2008 to 2012
3
Dubai Islamic Bank PJSC
2.5 2
Union National Bank
1.5 1
Abu Dhabi Islamic Bank - Public Joint Stock Co.
0.5
Mashreqbank PSC
0 2008
9.2.6
2009
2010
2011
2012
Chart 6 Return on Equity Average (ROEA) from 2008 to 2012
Chart 6 - Tabe 8
Return on Average Assets (ROAE)
25
Dubai Islamic Bank PJSC
20
rate %
Union National Bank 15 10
Abu Dhabi Islamic Bank - Public Joint Stock Co.
5
Mashreqbank PSC 0 2008
2009
BUiD-F&B- 2013109084
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2011
2012
Page 33
9.2.7
Chart 7
profit before Tax
USD mil
Chart 7 500 450 400 350 300 250 200 150 100 50 0
Dubai Islamic Bank PJSC Union National Bank
Abu Dhabi Islamic Bank - Public Joint Stock Co. Mashreqbank PSC
2008
9.2.8
profit before Tax
2009
2010
2011
2012
Chart 8 GDP - Inflation
Chart 8 .1
GDP + Inflation
14.00% 12.00% 10.00% Axis Title
8.00% GDP real growth rate %
6.00% 4.00%
Inflation rate %
2.00% 0.00% -2.00%
2008
2009
2010
2011
2012
-4.00% -6.00%
BUiD-F&B- 2013109084
Page 34
chart 8.2 Population-mil 7.6 7.4 7.2 7 6.8
Population-mil
6.6 6.4 6.2 6 2008
2009
2010
2011
2012
Chart 9 Profit before Tax mil USD
Chart 9 Profit before Tax mil USD 500 450 400 350 300 250 200 150 100 50 0
Dubai Islamic Bank PJSC Union National Bank Abu Dhabi Islamic Bank Public Joint Stock Co. Mashreqbank PSC
2008
2009
BUiD-F&B- 2013109084
2010
2011
2012
Page 35
Chart 10: Operating profit/ average Assets & Operating profit/ average Equity
Chart 10 Oprating profit/ average Assests and Equity 25
Operating Profit/ Average Equity == Dubai Islamic Bank PJSC 20
Operating Profit/ Average Equity == Union National Bank Operating Profit/ Average Equity == Abu Dhabi Islamic Bank - Public Joint Stock Co.
Profite Rate %
15
Operating Profit/ Average Equity == Mashreqbank PSC 10
Operating Profit/ Average Total Assets == Dubai Islamic Bank PJSC Operating Profit/ Average Total Assets == Union National Bank
5
Operating Profit/ Average Total Assets == Abu Dhabi Islamic Bank - Public Joint Stock Co.
0 2008
2009
2010
2011
2012
Operating Profit/ Average Total Assets == Mashreqbank PSC
-5
BUiD-F&B- 2013109084
Page 36
9.2.9
Chart 11- Interest Income on Loans/ Average Gross Loans
Chart 11- Interest Income on Loans/ Average Gross Loans 8
Dubai Islamic Bank PJSC
7
6 %
5
Union National Bank
4 3 Abu Dhabi Islamic Bank - Public Joint Stock Co.
2 1 0 2008
2009
2010
2011
Mashreqbank PSC
2012
9.2.10 chart12 - Interest Income/ Average Earning Assets
chart12 - Interest Income/ Average Earning Assets 7
Dubai Islamic Bank PJSC
6
%
5 Union National Bank
4 3 2
Abu Dhabi Islamic Bank - Public Joint Stock Co.
1
Mashreqbank PSC
0 2008
2009
BUiD-F&B- 2013109084
2010
2011
2012
Page 37
9.2.11 Chart 13- Net Interest Income/ Average Earning Assets
Chart 13- Net Interest Income/ Average Earning Assets 5 4.5
Dubai Islamic Bank PJSC
4 3.5
Union National Bank
%
3 2.5
Abu Dhabi Islamic Bank - Public Joint Stock Co.
2 1.5 1
Mashreqbank PSC
0.5 0 2008
2009
2010
2011
2012
9.2.12 Chart14- Interest Expense on Customer Deposits/ Average Customer Deposits
Chart14- Interest Expense on Customer Deposits/ Average Customer Deposits 5
Dubai Islamic Bank PJSC
4 3 %
Union National Bank
2 1 0 2008
2009
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2010
2011
2012
Abu Dhabi Islamic Bank - Public Joint Stock Co.
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9.2.13 Chart15- Interest Expense/ Average Interest-bearing Liabilities 4.5 4
Chart15- Interest Expense/ Average Interest-bearing Liabilities
3.5
Dubai Islamic Bank PJSC
3
Union National Bank
%
2.5 2
Abu Dhabi Islamic Bank - Public Joint Stock Co.
1.5
Mashreqbank PSC
1 0.5 0 2008
2009
2010
2011
2012
9.2.14 Chart16- Net Int. Inc Less Loan Impairment Charges/ Av. Earning Assets
Chart16- Net Int. Inc Less Loan Impairment Charges/ Av. Earning Assets 4
3.5
Dubai Islamic Bank PJSC
3
%
2.5
Union National Bank
2 Abu Dhabi Islamic Bank - Public Joint Stock Co.
1.5 1
Mashreqbank PSC
0.5 0 2008
2009
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9.2.15 Chart17- Net Interest Inc Less Preferred Stock Dividend/ Average Earning Assets
Chart17- Net Interest Inc Less Preferred Stock Dividend/ Average Earning Assets 5
Dubai Islamic Bank PJSC
4 3 %
Union National Bank
2 1 0 2008
9.2.16 Cart 18
2009
2010
2011
2012
Abu Dhabi Islamic Bank - Public Joint Stock Co.
Population-mil
Population-mil 7.6
7.4 7.2 7 6.8
Population-mil
6.6
6.4 6.2 6 2008
2009
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2011
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